You’re probably new to cryptocurrency, probably just joined the anarchic crypto world due to FOMO. Everybody is telling you to do your own research before buying and selling coins and this you have!
Just a few days ago you learned about arbitrage trading, buy low sell high on different platforms, you bought some Etherium (ETH) at $2600 and think it’s wise to sell at $2900 so you transfer the coins to your Binance P2P wallet, and then right there, the first listing is ‘TopCrypto’ a verified fella with about 250 ETH in his wallet and he is buying your ETH at $8,873. This is a 300% price margin.
Your face lights up, this is triple numbers, “Ok, I see why people are trading this thing!” Your alter ego tells you, maybe it’s a mistake or a limited offer, you want to sell to this person bad! You initiate the trade and wait for payment.
All he had to do was pay up! For some reason even if Binance provides a crypto escrow service to secure users’ crypto assets and has warned you every single time to never confirm receipt if you haven’t received payment, the triple numbers look really nice, you tell the man okay let’s do this and confirm payment.
If you’re selling, never release the fund before you confirm that you have received money from the buyer. Be aware that some of the payment methods buyer use are not instant, and may face the risk of callback.– Binance
Now, now your money is gone!
When an ad is posted the amount of crypto for the ad is automatically reserved from the seller’s fiat wallet. This means that if the buyer runs away with your money and does not release payment, Binance can release the crypto from the reserved funds back to your wallet, but only if you don’t confirm payment.
Yes, there are some ill-intentioned users like Top Crypto in the space who try and take advantage of you, just as they do with other kinds of investments. This is just one case I identified, take care of your money, make sure you follow guidelines put in place by Binance, and please file appeals to report suspicious users and protect other users.
If you believe that your trading counterparty is trying to scam you, make an appeal, and share your evidence, and a team will take care of the dispute.